BrightSpring's Home Health Arm Soars: What's Powering Growth?

BrightSpring Health Services, Inc. BTSG is experiencing strong momentum in its Home Health Care segment, backed by the robust global expansion of the Home Healthcare market. Per a Grand View Research report, the global home healthcare market is estimated to witness a CAGR of 10.21% from 2025 to 2030.

The company’s Home Health Care segment generated $178 million in sales in the first quarter of 2025, marking a 21% year-over-year increase. Growth was driven by robust operational execution, expanding Medicare Advantage contracts, high patient satisfaction (approximately 90%), and leading quality metrics (over 80% of branches are rated 4 stars or higher, and the 60-day hospitalization rate continues to decline).

The company’s average daily census across home health and hospice rose to over 30,000, up 12% from the prior year. BrightSpring is also advancing its Homebase Primary Care model, aimed at delivering physician-led services in cost-effective, in-home settings. Additionally, the company is leveraging value-based models like ACOs and SNPs, targeting scalable growth to over 100,000 patients in the coming years. Overall, BrightSpring is capitalizing on the shift toward home-based care, supporting growth as well as improved patient outcomes.

Key Peers of BTSG in the Home Healthcare Space

Cardinal Health’s CAH at-Home Solutions expands the company’s reach into the home healthcare market, where demand for medical supplies, infusion therapies, and remote patient monitoring is surging.  In fiscal 2024, it served over 5 million patients, offering higher-margin, direct-to-patient distribution that complements institutional sales. Recent investments include a new automated distribution center in South Carolina and a second planned for Texas in 2025. The April 2025 acquisition of Advanced Diabetes Supply Group further strengthens Cardinal Health’s at-home capabilities. 

Addus HomeCare Corporation’s ADUS home healthcare segment saw modest growth in the first quarter of 2025, reflecting improved payer rates and operational stability. Though it remains a smaller part of the overall business, home health plays a strategic, integrative role. Addus is cautiously expanding this line through selective M&A while leveraging technology and operational synergies to enhance performance.

BTSG’s Price Performance, Valuation and Estimates

Shares of BrightSpring have gained 98.8% in the past year against the industry’s 18.9% decline. The S&P 500 composite grew 11.8% in the same period.

From a valuation standpoint, BTSG trades at a forward price-to-earnings ratio of 20.32, above the industry’s 14.25.

The Zacks Consensus Estimate for BTSG’s earnings has been on the rise over the past 60 days.

BTSG stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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